Barbados is set to embark on a sweeping overhaul of its failing water infrastructure under a $160m (US$80 million) investment backed by the Inter-American Development Bank (IDB) – a move the Mia Mottley administration said would target ageing mains, major system losses and long-standing supply issues affecting households and businesses.
The agreement with the Inter-American Development Bank (IDB) was formalised on Thursday as the prime minister attended the annual spring meetings of the IMF and the World Bank in Washington.
The programme represents the first phase of a wider $400m (US$200m) financing facility approved by the IDB in December 2025 to improve the resilience of potable water services in Barbados, with an additional $8m (US$4m) in grant funding supporting climate-focused components.
The investment comes against the backdrop of persistent challenges in the water system, including ageing infrastructure, inconsistent supply and significant losses before water reaches consumers.
At the signing, Mottley underscored the urgency of addressing those issues, noting that a substantial share of water produced is lost within the system.
She said: “For us, water is at the centre of Barbados’ future economic development. We do not always look it, but we are one of the fifteen most water-scarce countries in the world, and for every gallon that is pumped, 40 to 50 per cent can be lost before it reaches anybody’s house.
“Being able to resolve these issues, with ageing infrastructure and recognising that there are technological gains to be made as well, means that we need the investment. I do not call it loans, but rather an investment in water to make us resilient.”
At the core of the five-year programme is a major upgrade of Barbados’ distribution network.
Some $110m (US$55m) has been allocated to replacing sections of ageing and deteriorating mains, with plans to replace approximately 100 kilometres of critical pipelines as part of the first phase.
A further $40m (US$20m) will target water losses, termed non-revenue water, through improved leak detection, bulk metering, system monitoring and network sectorisation, aimed at ensuring more of the existing supply reaches homes and businesses.
Fewer than five per cent of the island’s mains have been replaced, leaving much of the system vulnerable to inefficiencies and breakdowns, the government said in a statement on Thursday.
Beyond infrastructure, the programme also includes measures to strengthen the Barbados Water Authority’s technical and operational capacity.
An allocation of $5m (US$2.5m) will support institutional strengthening, including training, improved planning tools and enhanced monitoring systems tied to national water management goals.
This work is expected to align with broader frameworks such as the Water Resources Management Plan and the Water and Sanitation Master Plan.
Another $5m (US$2.5m) has been set aside for programme execution, including staffing, audits, monitoring and evaluation, and environmental and social safeguards.
According to IDB projections, the programme is expected to improve the reliability and continuity of water service for more than 150 000 people, while also supporting over 2 000 businesses, including operators in the tourism industry.
On a wider scale, the initiative is expected to benefit the entire population through improvements in national water management systems and long-term planning, particularly as Barbados continues to face climate-related pressures.
Further acknowledging the IDB’s role, Mottley described the institution as a “trusted friend and partner”: “Since coming to government, the IDB has walked every step of this journey with us. It is not just the financing. The technical assistance matters too, particularly at a time when the country must confront a very real skills deficit while still pushing ahead with urgency and purpose.”
The administration has framed the programme as a shift towards a more comprehensive and sustained approach to water management, moving beyond piecemeal fixes to address one of the island’s most critical infrastructure challenges. (SM)
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